Marketing Public Relations: A Consumer-focused Strategic Perspective

AU

THO

R C

OP

Y

JOURNAL OF CUSTOMER BEHAVIOUR, 2014, Vol. 13, No. 1, pp. 5-24http://dx.doi.org/10.1362/147539214X14024779343631ISSN1475-3928 print /ISSN1477-6421 online © Westburn Publishers Ltd.

Marketing public relations: A consumer-focused strategic perspective

Ioanna Papasolomou, University of Nicosia, Cyprus*Alkis Thrassou, University of Nicosia, CyprusDemetris Vrontis, University of Nicosia, CyprusMajka Sabova, Cyprus

Abstract Transcending the norms of conventional strategic marketing practices, businesses increasingly turn to new and/or alternative methods to increase their competitiveness, all within a globalised and harsh environment characterised by hyper-competition and incessant change, both at the business and the consumer ends. In this context, this research finds that Marketing Public Relations (MPR) offers organisations an effective means to the same end that is both economically and practically viable in the majority of cases. Moreover this research conceptually develops its empirical findings to construct a consumer focused MPR framework in the strategic marketing context, based on contemporary consumer and strategic theory.

Responding to the lack of sufficient data related to MPR, in spite of its growing popularity, this research starts with an extensive literature review on the subject. It subsequently undertakes an empirical investigation within the Adverting and Public Relations agencies sector in Cyprus, underlining the emphasis practitioners place on MPR for its effectiveness, but also for its economic efficiency in achieving, primarily, marketing objectives, such as launching new products in the market, re-positioning brands, building brand reputation and increasing sales.

The methodology employed the multiple-case study method, through in-depth personal interviews and secondary data analysis on the approaches, perceptions and practices of 13 advertising and public relations agencies out of a total of 37 agencies that are currently members of the Cyprus Advertising Agencies Association.

*Correspondence details and biographies for the authors are located at the end of the article.

JOURNAL OF

CUSTOMERBEHAVIOUR

Cont’d...

AU

THO

R C

OP

Y

INTRODUCTION

Transcending the norms of conventional strategic marketing practices, businesses increasingly turn to new and/or alternative methods to increase their competitiveness, all within a globalised and harsh environment characterised by hyper-competition and incessant change, both at the business and the consumer ends (Thrassou & Vrontis, 2009). In this context, this research finds that marketing public relations (MPR) offers organisations an effective means to the same end that is both economically and practically viable in the majority of cases. Moreover the research conceptually develops its empirical findings to construct a consumer focused MPR framework in the strategic marketing context, based on contemporary consumer and strategic theory.

Kerr (2009) stated that when one thinks of comparing advertising and public relations, it is like comparing apples and oranges, since although they both belong to the broad general category of communications, they are significantly different, both conceptually and practically. Researchers in general have worked relentlessly over many years to achieve the ideal combination of advertising, public relations, direct marketing and all their promotional ‘siblings’. The end result of this effort was the evolution of an integrated marketing communication (IMC) approach to the promotional element of the marketing mix strategy.

IMC is regarded as a more holistic, strategic and customer-focused way of planning and implementing the promotional process. IMC is perceived as “the integration of specialized communication functions that previously have operated with various degrees of autonomy” (Duncan & Everett, 1993, p. 30). The growing body of literature demonstrates the emphasis placed on IMC. In practice, the small agencies especially, had always tried to coordinate the marketing communication disciplines (Duncan & Everett, 1993). There is also evidence to suggest that despite the development of the IMC theory, practitioners are hesitant in strategically integrating the various promotional elements and instead have adopted a more tactical approach (Eagle, Kitchen, & Bulmer, 2007).

In academic terms (and research), the struggle for integration of the promotional tools has not been easy, partly due to the confusion and debate between the

Journal of Customer Behaviour, Volume 13 JCB6

The empirical results show that advertising is losing ground to its old ‘rival’, public relations, within an advertising industry that shrank by 25% in value within a year, and with print media being the biggest loser. Looking for cheaper and more trustworthy (consumer convincing) alternatives to traditional media, advertisers and their clients increasingly turn to MPR, though professionals in the field appear hesitant to fully apply MPR, apparently due to conservatism, but also some lack of knowledge and experience. The conceptual development presents the need for MPR to ‘bridge’ the gap between organisational strategy and the consumer, thereby providing the interrelations and principles guiding this linkage.

Keywords Marketing public relations, Promotional mix, Advertising, Integrated marketing communications, Strategy, Consumer

AU

THO

R C

OP

YPapasolomou, Thrassou, Vrontis & Sabova Marketing public relations 7

marketing and PR disciplines. In the past, marketers had treated PR simply as part of the marketing mix. When one turns to the literature of marketing management, in fact, one frequently comes across attempts to assign public relations a role under the domain of marketing. One of the striking features of many of the marketing textbooks is the lack of recognition of the vast literature related specifically to public relations (Grunig, 1992). This indicates that PR is largely subsumed under the marketing function (Kitchen & Moss, 1995) and that PR activity is usually treated as a product of publicity and given a subordinate role, under marketing. Many marketing academics, including Kotler (1988), McDaniel (1979), and Schwartz (1982), in their various writings have made a number of attempts to subsume public relations activity under marketing. They assume that the marketing mix is made up of a set of controllable variables that a firm uses to influence a target market. Specifically, Kotler (1988) proposed that among these variables, public relations should be conceived as a part of marketing in the performance of its communication role.

On the other hand, PR-focused academics, such as Grunig (1992), suggest that the public relations and marketing functions, as structured within an organisation, have different missions to fulfil and therefore appeal to different paradigms or models of the organisation’s social environment and to communications systems that are designed and utilised in that environment. According to Grunig (1992), marketing managers tend to elevate marketing activities to a dominant position and marketing is treated as a company’s most important commitment. Within this organisational framework, public relations activity is not seen as an equal partner with marketing, but as a technical function - a set of tasks designed to assist the marketing function in a direct way. The Public Relations Society of America which represents the views of many PR practitioners and academics contended that public relations fulfilled many organisational functions, with marketing only being one of these (Rose & Miller, 1994).

This debate created a natural tendency for PR and marketing to be seen as complementary and converging disciplines, both in academia and in the business world, a tendency that gradually led to the emergence and growth of the concept of marketing public relations.

LITERATURE REVIEW

The term marketing public relations was coined in the 1980s in an effort to distinguish the use of public relations techniques in achieving marketing objectives from the general practice of public relations (Harris & Whalen, 2006). It is an ‘all encompassing’ term integrating concepts and tools from public relations, marketing, advertising and research. Harris and Whalen stipulate that its growth was supported by the recognition of its intrinsic value by business executives and the ability of PR professionals to develop PR campaigns in support of marketing strategies. MPR was in fact described as the largest and fastest growing segment of a fast growing industry. A study of the global market for PR services carried out by Shandwick Consultancy (1989) revealed that 20 per cent of the fee income of PR firms throughout the world was generated by PR for consumer goods.

Henry (1995, p. 3) defined MPR as “a comprehensive, all-encompassing public awareness and information program or campaign directed to mass or specialised audiences to influence sales or use of a company’s products or services”. Harris

AU

THO

R C

OP

Yand Whalen (2006, p. 7) postulate that MPR refers to “the use of public relations strategies and tactics to achieve marketing objectives”. According to Kotler (2003), MPR plays a significant role in the process of launching a new product as well as in the repositioning of a mature product: it can build interest in a product category, influence specific target groups, defend a product which experiences public problems and build the corporate image in a way that reflects favourably on its products/services. Kitchen and Papasolomou (1997) emphasised the effectiveness of MPR in winning consumers’ trust, celebrating special occasions and sponsoring special events and programmes. Giannini (2010) posits that MPR has the potential to enhance the visibility of products and organisations, inform stakeholders in relation to issues that are critical to the organisation, influence public opinion favourably towards the organisation, as well as encourage the trial of products and increased usage.

Giannini (2010, p. 4) defines MPR as “any program or effort designed to improve, maintain, or protect the sales or image of a product by encouraging intermediaries, such as traditional mass media, the electronic media, or individuals, to voluntarily pass a message about the firm or product to their audience of businesses or consumers”. A number of studies have been carried out in order to identify the degree of awareness of the business sector regarding MPR. One of these is a survey carried out among 286 Advertising Age subscribers who held marketing and advertising positions with client organisations (Duncan, 1985). Among the key findings were the following:

• MPR is perceived as effective in a variety of areas that were traditionally the responsibility of advertising

• MPR is especially effective in building brand awareness and brand knowledge

• MPR breaks through clutter

• MPR complements advertising by increasing the credibility of messages

• MPR is made cost-effective by an increase in media advertising costs.

MPR and IMC

MPR was once referred to as product publicity and was incorporated into PR campaigns. Gradually, it evolved into a holistic and comprehensive communication programme targeting mass or well-defined specialty audiences, with the aim of creating awareness and giving information about products and services to boost sales. The concept combines many different tools and techniques, which have traditionally belonged to the PR discipline, within an all-encompassing campaign. MPR continues to evolve as the lines between product publicity, public relations, promotion and advertising are becoming increasingly blurred. Its growth and popularity is further supported by the move towards integrated marketing communications and the tendency of advertising agencies to provide a “full service” to their clients by planning and integrating various promotional tools such as advertising, public relations, and direct marketing.

For several years, advertising and PR professionals worked separately and independently even though both had the same goal, which was to increase the company’s sales. This resulted from a lack of coordination, cooperation, synergy, and mutual planning, and effected a duplication of efforts, inefficiency and ineffectiveness. However, the rapidly changing environment in relation to consumers (demographics, lifestyles, media use, buying and shopping patterns), technological progress (digital satellite systems, internet), new media (cable TV, electronic mail, mobile phones) and


AU

THO

R C

OP


social media (Facebook, blogs, YouTube) has forced marketers to reflect and adapt to these environmental changes and developments by adopting an integrated marketing communications approach to their promotional and marketing strategies (Vrontis, Thrassou, Chebbi & Yahiaoui, 2012). These strategies ultimately aim for the desired economically effective and efficient agility and adaptability competencies to fit the highly competitive and ever-changing contemporary business environment (Chebbi, Yahiaoui, Thrassou, & Vrontis, 2013).

MPR adds credibility to the message because consumers perceive MPR as news or opinions which are more trustworthy (Giannini, 2010), thus strengthening IMC through trust-based relationships. In addition, the rising costs and declining effectiveness of mass advertising (Kitchen, 2010; Kotler, 2003; Seitel, 2001; Zyman, 1999), the increasingly competitive marketplace and the heightened pressure to break though consumer resistence, indifference and clutter (Harris & Whalen, 2006) create an environment which is conducive for the growth of MPR.

Super Bowl advertising is an example that illustrates the complementary role that MPR plays to advertising and IMC campaigns. MPR contributes significantly to the publicity that builds up around the TV commercials broadcast during the Super Bowl. A few weeks before the game and in the weeks following the game, the media and consumers engage in a frenzy of word-of-mouth communication about the Super Bowl commercials. Discussions and media commentary cover topics that span from who the advertisers will be to rumours about commercials. In 2008, the New England Patriots vs. New York Giants game was watched by 97.5 million viewers (ESPN.com, 2008). After the game, millions more saw the commercials on the Web and others wrote and/or read hundreds of articles and/or participated in numerous conversations about the ads. The MPR component added value to the ads and heightened their impact.

MPR also complements sales promotion, much in the same way as it does advertising. MPR uses publicity stunts and event marketing to create a “buzz” around sales promotion activities. As a result, the combination of the two has more value to the firm than the sales promotion alone. When it comes to personal selling, MPR ‘prepares the ground’. Media mentions and word-of-mouth communication contribute by creating awareness of products and their use among consumers. Once this is achieved, sales people can approach potential customers and help them in their purchase decision process. MPR supports the sales force by informing people and hence creating a lead on which to build a profitable relationship. Direct marketing and MPR interact in the same way as personal selling and MPR. MPR creates and enhances consumer awareness of a product or company through media mentions and word-of-mouth communications which subsequently lead to consumers who are more receptive to the direct marketing message. When it comes to PR, MPR uses PR tools in order to achieve marketing objectives, but at the same time, the two concepts need to be integrated in order to achieve organisational goals.

Overall, MPR has the potential to synergise with other forms of marketing communications to increase the effectiveness of the overall promotional campaign and to ensure a sum that is greater than its components’ individual cumulative strengths.

Theoretical gaps and conclusions

The theoretical part of this research has shown that the MPR concept is under-researched, despite its growing popularity. The literature reviewed revealed only

AU

THO

R C

OP

Yone paper written purely on the actual MPR concept and this was Kitchen and Papasolomou (1997), leaving a number of matters regarding the concept that demand further research.

Firstly, it is important to identify the key ideas underpinning the concept, as perceived by practitioners. The literature revealed that there is a lack of consistency in the way MPR is viewed and defined between practitioners and academics. Secondly, there is a need to enhance understanding in relation to the factors that contribute to the growth of MPR. Thirdly, there is limited evidence regarding the way in which MPR is practised, the tools used and how these are implemented. Finally, there is inadequate knowledge in relation to how MPR interrelates and integrates with advertising and the other promotional tools within an integrated marketing communication programme.

RESEARCH METHODOLOGY

Research approach

Daymon and Holloway (2002) explored the suitability of qualitative research in the public relations and marketing communications field. Qualitative research enables a researcher to be mindful and to understand the lived experience of a phenomenon (Fill, 1999). Since the aim of the present study is to shed light onto the practice of MPR in the specific sector, the adoption of a qualitative research approach rather than a quantitative research method was justified. The qualitative research approach enabled the researchers to uncover and study perceptions, attitudes and experiences of practitioners in relation to the MPR concept, since the existent literature revealed that the knowledge and understanding regarding MPR is limited. According to Daymon and Holoway (2002), qualitative research is mostly associated with an interpretive paradigm which enables researchers to understand social reality from the point of view of the research participants. The interpretive paradigm guided the present research study since the aim was exactly to understand MPR through the interpretations and experiences of practitioners.

The researchers adopted a case study approach to exploring the experiences and perceptions of practitioners in relation to MPR, as implemented by advertising and PR agencies in Cyprus. According to Daymon and Holloway (2002, p. 105) “case study is an intensive examination, using multiple sources of evidence, of a single entity which is bounded by time and place”. Yin (2003) claims that the importance of case studies has rapidly grown along with the need to understand complex social phenomena, since it enables a researcher to investigate in depth the characteristics of real-life situations such as organisational and managerial processes, individual life cycles, and international relations. According to Daymon and Holloway (2002, p. 105), the purpose of the case study is “to increase knowledge about real, contemporary communication events in their context”. This is in fact the case with the current study: understanding the way the advertising agencies sector implements MPR.

A fundamental decision relating to the case study research approach is whether to use a single-case study or a multiple-case study. In the current research study, the researcher adopted a multiple-case design that offers the (within-limits) generalisation advantage. Single case design is generally suitable for a deep but narrow investigation of a single phenomenon (Daymon & Holloway, 2002). Since the current study aimed


AU

THO

R C

OP

Yat generalising to a certain extent the findings regarding MPR practice in Cyprus, rather than investigating in depth the specific MPR practices used within a single organisation, a multiple-case study design was employed.

Tools and sample

For this research study, the researchers studied 13 advertising and PR agencies in Cyprus. This number represented approximately 40% of the total 37 advertising and PR agencies registered with the Cyprus Advertising Agencies Association. Daymon and Holloway (2002) emphasised that it is unusual to study more than four cases since with every additional one the advantages of multiple case design tend to diminish. Based on this, the initial aim of this research was to study only four agencies. However, during the actual data collection process the researchers realised that there was a need to study significantly more agencies in order to collect the necessary data. Specifically, because the present study was the first to explore how a specific sector implements MPR it was perceived as essential to incorporate more agencies in the study to ensure a more accurate comprehensive perspective and ‘visualisation’. The idea of not specifying the final number of cases in the beginning of the research is supported by Yin (2003), who claimed that the choice of the units of analysis could be revisited and adapted during the data collection process.

EMPIRICAL RESEARCH FINDINGS

According to a study by media-monitoring company Matrixmedia, advertising revenues in Cyprus have seen a year-on-year decrease. The study revealed that there has been a 25 per cent drop in advertising in the previous year (2012). Television’s advertising revenues have also seen a year-on-year drop. TV revenues dropped from € 325 M to € 293 M. Advertising revenues for print media dropped from € 76 M in 2011 to € 58 M in 2012 (Matrixmedia, 2013). According to Matrixmedia, the media advertising pie is traditionally divided between TV, press and radio with 70 per cent going to TV, 20 to print and 10 to radio. The result of falling revenues for TV and print has seen media owners carry out a series of layoffs and salary cuts to delay closure. The negative developments in the media sector have had a direct impact on the marketing communication strategies adopted by advertising agencies. Advertising agencies have in fact started to redesign their marketing communication by shifting some of the emphasis placed on advertising to MPR.

Key MPR ideas

The study’s findings revealed that the majority of practitioners interviewed do not use the ‘MPR’ term in practice, although they do implement the concept.

The understanding and interpretation of various terms depends greatly on each organisational culture and the terminology used in each organisation. We do not use the term MPR. We recognise the tactics that relate to MPR by designing a specifi c strategy or activity. However, if we used the term MPR it would be confusing. (Executive Director)

It is not important what terms you use as long as you use the correct words. I think PR is common sense. A client wants to generate awareness, change perceptions, create

11Papasolomou, Thrassou, Vrontis & Sabova Marketing public relations

AU

THO

R C

OP

Yknowledge and you need to work with these objectives. Whether you say MPR or CPR… Especially in a place like Cyprus, you are still going to use similar tools in different ways that would make your ‘words’ come true. (PR Agency Director)

The practitioners interviewed identified the following ideas as the ones that underpin the MPR concept:

• MPR directly or indirectly contributes to the achievement of marketing and sales objectives

• MPR enables companies to promote the products/services in a trustworthy way

• MPR makes the media and the public interested in a cause, product or service

• MPR prepares the public for news

• MPR has the ability to create favourable perceptions towards brands

• MPR encourages favourable word-of-mouth communication.

These ideas can be integrated to form a new definition for MPR:

MPR is a promotional tool that directly or indirectly contributes to the achievement of marketing and sales objectives by promoting brands and causes in a trustworthy manner, creating media and public interest in them, preparing the public for news, creating favourable perceptions and stimulating positive word-of-mouth communications.

Table 1 presents some verbatim quotations given by the interviewees that highlight the way in which practitioners conceptualise the MPR concept.

It is obvious from the definitions given that the understanding of the concept depends on the MPR expertise/experiences and knowledge of the practitioners interviewed. The practitioners perceive MPR differently, depending on which MPR function they consider as the most important. Nevertheless, some of the practitioners defined MPR as they would define the overall PR discipline. This indicates the close relationship and interdependence of the MPR and CPR (Corporate Public Relations) concepts.

Managerial implication 1: Although the MPR term per se is not used by local practitioners, the concept is in fact implemented and it is an integral part of promotional programmes. It is regarded as an important tool in achieving various marketing objectives such as promoting products, generating sales, and generating interest in a cause. It is important that practitioners create awareness and generate interest in MPR among their clients in order to encourage them to invest in it.

The factors that led to the growth of MPR

The practitioners interviewed believe that today’s consumers are more informed, educated, sophisticated and even critical of the promotional techniques used by companies. This highlights the importance of using MPR, which has the potential to instill trust and create a favourable environment for the communication process to take place. The study revealed the following as the key factors that have enhanced the importance of the MPR concept in the local market:

Journal of Customer Behaviour, Volume 13JCB12

AU

THO

R C

OP

Y

• Advanced technology and telecommunications that enable customers to be more informed about brands and share word-of-mouth communication faster

• Smaller promotional budgets

• Fragmentation of media, which makes it more difficult to reach target audiences

• Increasing competition in the advertising and PR sector in Cyprus, which forces local agencies to adopt more efficient and unique marketing communication techniques and approaches.

Some of these factors corroborate the past and current MPR literature (Broom, 2009; Giannini, 2010; Kitchen, 2010; Kitchen & Papasolomou, 1997; Kotler, 2003; Seitel, 2001; Zyman, 1999).

The interviewees claimed that MPR is an important marketing communication tool due to its ability to effectively achieve the following goals:

• Building relationships with customers on the basis of a face-to-face interaction and two-way dialogue

• Generating awareness and brand recognition

• Making media interested in the promotional campaigns, thus creating credibility for the products/services and brands

• Communicating a key message about the products/services to target audiences in a way which does not always appear as a promotion

• Differentiation from the competition.

Papasolomou, Thrassou, Vrontis & Sabova Marketing public relations 13

TABLE 1 MPR definitions given by practitioners

Job title of interviewees Verbatim quotationsDigital and PR Manager of a

communications agencyMPR is a PR activity which helps the company to achieve

its marketing and/or sales objectives either directly or indirectly, through the projection of the company’s image and key messages via the mass media.

Executive Director of an advertising agency

MPR includes tools for achieving the marketing objectives.

Head of a PR department of a communications agency

MPR is a way of promoting a client without using above-the-line promotion.

Managing Director of an advertising agency

MPR is an activity organised and planned to cultivate the grounds for a product/service. In other words, to make consumers interested in a product/service and to prepare the market for them. MPR is the effort to create inventions to attract the audience.

Client Service Director of a communications agency

The whole PR is about having relations with different publics. It is a unique communication tool when you identify your target groups and how your strategy will reach these target groups all the time. Then, when talking about MPR, the target group is mostly customers.

Executive Director of a brand building agency

MPR is a way, function, of a company that aims at increasing the social capital of a brand by creating favourable perceptions.

AU

THO

R C

OP

YThe local practitioners interviewed stipulated that there is a shift from traditional promotional tools such as advertising and direct marketing towards ‘new’ contemporary approaches such as MPR, digital PR, and social PR. Nowadays, the availability of the internet, the invention of smart communication gadgets, the emergence of social media and networks and the growth of digital TV have moved the communications field to another dimension and have resulted in a more educated, informed and sophisticated market:

With consumers becoming more critical, knowledgeable, jaded, opinionated… we as agencies need to become more creative in attracting the consumers’ attention through the media as well as portraying a positive overall image of the company, not only the product. This in turn has pushed PR and marketing professionals to new and more creative ways in attracting the consumers’ attention. (Digital & PR Manager of a communication agency)

Consumers are aware of marketing tactics of companies, they are perfectly informed. Companies need to involve their customers in their culture to maintain the relationship. Traditional promotional tactics do not have the capability to do that. MPR does! (Executive Director of a brand building agency)

People started acknowledging MPR importance when they started to look elsewhere, behind the borders of traditional promotional tools. (Managing Director of a PR agency)

According to the interviewees, customers are overwhelmed with promotions, so the key is to transfer the message to the target audience in a way which does not appear as traditional promotion. And this is exactly when and how the need for MPR emerged. MPR enables companies to promote products/services indirectly through interaction and entertainment, thus creating curiosity and interest in the communication. MPR has the ability to attract the attention of media and hence provide third-party endorsement, which can make the message more believable. Another factor behind the growing importance of MPR is the reduction in promotional budgets. Many practitioners believe that tighter budgets may motivate clients to invest in MPR campaigns, since MPR can generate free media coverage as opposed to paid advertising.

Managerial implication 2: The study revealed that MPR is perceived as an important promotional tool by professionals for a number of reasons. This fi nding suggests that its value and contribution to the success of promotional campaigns is widely appreciated. As customers and other audiences become more sophisticated, educated, informed and critical, MPR will have the potential to instill trust, add credibility and make audiences more receptive to the marketers’ messages.

MPR: The ‘ace’ in integrated marketing communication (IMC) campaigns

Local practitioners often integrate MPR in IMC campaigns in order to achieve maximum exposure and effectiveness. The practitioners interviewed share the view that MPR should be incorporated in all the promotional campaigns. Currently, MPR is given a secondary role and not a leading role, which is usually reserved for advertising. There is a wide recognition and appreciation of the importance of combining and integrating promotional tools to achieve maximum exposure. None


AU

THO

R C

OP


of the promotional tools alone can achieve the desired outcome. Instead, the tools need to be combined in order to strengthen each other. The combination of tools depends always on the client’s requirements, preferences, and the objectives of the campaign for which the communication strategies are designed.

MPR’s growing popularity in the local advertising and PR sectors is due to its ability to create media and market receptivity. This popularity is due to the fact that MPR allows practitioners to integrate marketing and PR tools in innovative and creative ways to foster interactions between organisations, brands, media and the public. MPR manifests itself as a recommendation from a friend, or an enthusiastic claim about a brand from a happy and satisfied customer. This results in higher credibility than other promotional messages or tools like advertising and direct selling, and makes the message more trustworthy and believable. In many instances MPR messages are spread voluntarily and consumers perceive them differently than other types of promotion. Both the media and consumers become ‘partners’ in the firm’s efforts to create a buzz about brands.

The study revealed that MPR is often integrated in IMC programmes that focus on launching a new product or service with the aim of preparing the market, creating awareness and providing information. It is also used in brand building campaigns in order to achieve brand awareness and create brand loyalty. The study also revealed that MPR is often used in order to promote the products or services which cannot be promoted through traditional tools such as advertising. These are, for instance, pharmaceutical products, legal services or medical services.

Managerial implication 3: The study revealed that MPR is an integral part of IMC campaigns and that it’s growing popularity is stemming from its ability to add credibility to a message and stimulate favourable word-of-mouth communication.

MPR: A ‘new’ partner for advertising

MPR appears to have both a complementary and supportive role in traditional promotional tools, especially advertising. Although the practitioners interviewed believe that advertising is still perceived by local clients as the most important promotional tool, they are recognising the fact that the impact of advertising can be strengthened if it is supported by MPR. A number of factors were put forward by practitioners:

• Advertising alone does not guarantee the success of the communication process

• MPR enhances two-way communication

• MPR is more credible and trustworthy than advertising

• MPR can create a buzz about the brand and hence, pave the way for advertising

• MPR does not require extensive promotional budgets.

MPR is a very important tool and it has an important place in integrated marketing communications. Advertising campaigns should have a preceding MPR campaign which prepares the public for news. MPR should complement and support the advertising function. (Director of an advertising agency)

Advertising is decreasing in importance since it does not encourage interaction with potential customers…the target customers are not passive receivers. They want interaction with the sellers. MPR creates two-way communication - a dialogue which is

AU

THO

R C

OP

Ycrucial for the success of the communication process. (Executive Director of a brand building agency)

Managerial implication 4: There is a growing tendency to complement advertising campaigns with MPR to add credibility and to create a buzz. MPR has the potential to create a two-way communication fl ow and hence compensate advertising’s key drawback, which is the lack of immediate feedback from consumers. MPR needs to be integrated with advertising as it has the potential to enhance its effectiveness in getting the message across to customers.

MPR tools

The local advertising and PR sector combines and implements various MPR tools in order to achieve a number of MPR objectives, primarily to generate media coverage and word-of-mouth communication. Giannini (2010), Harris and Whalen (2006) and Seitel (2001) highlight the emerging role and importance of social media, a key MPR tool, which is supported by the study’s findings. The practitioners interviewed highlighted the potential of social media as a powerful communication tool, which has the potential to radically change the communications field. The interviewees acknowledged the fact that social media presents a new challenge for them, since word-of-mouth communications can now spread faster through many more audiences and instantaneously. Hence, it becomes even more difficult for them to control their corporate image and the image of their brands, products or services in this new, ‘uncontrolled’, and extremely powerful medium.

MPR is practised in the local market through the following tools in order to achieve specific objectives (Table 2).

The study revealed that the practitioners interviewed combine different MPR tools in order to reach their target audiences as well as generate media coverage, publicity and word-of-mouth communication. Some of the tools are used on a regular basis, for example, press releases, publications, and articles, while other tools such as events, seminars and competitions are implemented on an ad hoc basis. In general, press releases, social media and different events targeted at the media and consumers are the MPR tools most frequently used. The local practitioners perceive social media as a primary MPR tool that has the potential to radically change the communications field. An interesting research finding is that the use of social media as an MPR tool bears some risks, as the message is passed over to the audience who can then filter it in any way that is desired. According to the Managing Director of an advertising agency:

Social media makes it very cheap and easy to reach the audience in ways that we were not able to do so before. We can reach the target audience and at the same time we can get measurable results. This adds a new dimension in using MPR. It is a fl exible MPR tool which can be used and adapted to fi t many different situations.

Managerial implication 5: The success of the MPR campaign depends on the effective integration and implementation of the tools presented earlier. In the majority, these are PR tools that are used in a marketing-like approach guided by creativity and imagination. The ultimate aim is to generate interest and attract attention to the brand to encourage people to engage with the brand and exchange value. The tools need to be used continuously and interchangeably in order to maintain interest and stimulate ‘buzz’ for the brand, which is at the heart of any MPR activity.


AU

THO

R C

OP


Local MPR campaigns

The present study showed that the local agencies use MPR when they launch new products/services in the market, reposition existing ones, and in B2B marketing. The study revealed that MPR campaigns have been in use in the local market since 1999. Harris and Whalen (2006) referred in their work to MPR campaigns that were launched to introduce new products such as Gillette Mach 3, Pfizer Viagra, Toyota Prius and the Harry Potter books and movies. The agencies studied gave the following examples of local successful MPR campaigns:

• Launching Lay’s Sensations crisps

• Re-launching of Galaxy chocolate

• Introducing McDonald’s Fruit Cup

• Promoting the services of a local law firm

• Launching a national distribution centre

• Mini Cooper Art campaign

TABLE 2 MPR tools used by local agencies

MPR tools MPR objectivesPress release To get media coverage

To create awareness for the product/service/brandTo reach large audiences

Press conference To create media interest in a specific cause/eventTo enhance publicity

Events, presentations, exhibitions, road shows

To generate publicityTo build relationships with customersTo strengthen awareness through entertainment and

educationSeminars To educate the public in relation to a product/service

To generate publicityTo reach narrower market segments

Anniversaries To remind target publics about the product/service/brandTo generate publicityTo maintain interest

Extraordinary events (Guerrilla MPR)

To create strong awareness about a product/service/brand

Social media To share informationTo engage customers and others with the brandTo create a ‘buzz’ about the brand

Newsletters, publications To promote the image of companies and their expertiseTo build awareness regarding companies and their activities

Competition To build interaction with publicsTo create awareness

Sampling To encourage trialTo build demand

Spokespersons, brand ambassadors, interviews

To influence public opinionTo generate trust and aspiration

AU

THO

R C

OP

Y• Launching the Nissan X Trail

• Introducing Pfizer Viagra in the local market

Managerial implication 6: Local practitioners use MPR tools to achieve a number of marketing objectives such as to introduce a new product/service or to reposition existing brands. The MPR concept has the potential to signifi cantly enhance the marketing efforts of an organisation by creating a ‘buzz’ around the brand or activity, as well as adding credibility, since it is often perceived as news or opinion rather than a paid solicitation. Marketers and their advertisers must therefore be willing to invest in MPR practice and use it in different situations as the benefi ts to be gained from its successful implementation are valuable.

ELABORATIVE INTEGRATION OF FINDINGS:A CONTEMPORARY MPR PROVISIONAL FRAMEWORK

Enter the consumer

This research cannot turn a blind eye to the fact that existing works on MPR have studied it as a scholarly and executive subject, almost entirely in the communications context, but largely ignoring the consumer perspective. The significance of consumer behaviour knowledge rests on the foundation of modern marketing philosophy, which recognises the consumer as being the focus of marketing activity and with a growing influence on business activity and decisions (Blackwell, Miniard, & Engel, 2006; Kotler, Armstrong, Saunders, & Wong, 2005; Schiffman & Kanuk, 2004). Understanding consumers and their behaviour, therefore, is frequently the key to business success and a prerequisite for an effective strategic marketing system.

It is not the focus or place of this research to present the entire consumer theory background. However, it is noted that recently, literature has begun to analyse and interpret the changing business world within a more idiosyncratic context: the rising form of the new consumer and its corresponding behaviour (Thrassou, 2007; Vrontis & Thrassou, 2007). In this context, businesses are perceived as marketing reflections of consumer behaviour, and therefore strategic marketing decisions are directly linked to it as well. MPR, therefore, cannot be fully understood nor prescribed on without a consumer perspective study. The evolution of knowledge on MPR appears to have a missing link, markedly obvious in the strategic marketing context, which by definition should hold the consumer in its epicentre. This research closes this gap in knowledge, definitively leading to an MPR model in the strategic marketing context.

The same authors (Vrontis & Thrassou, 2007) concluded that severely competitive business environments do not really allow much room for manoeuvre between producer supply and consumer demand, thus necessitating both a sound understanding of consumer wants and the wherewithal to satisfy them. It is also rendered increasingly rare for businesses to offer true value through visibly higher quality, lower price, differentiation or the best combination of these. Consequently, value is frequently offered through image construction that communicates value to the consumer. This process is often artificial, in the sense that it relies more on perceptions than on reality. In a world dominated by information multimedia though, the perceptions in question become a more critical parameter than objective reality itself (McCullough, Tsang, & Emmons, 2004; Naumann, Jackson, & Rosenbaum, 2001; Palmer & Ponsonby, 2002). Grasping this concept, businesses spend a large


AU

THO

R C

OP


percentage of their income on shaping perceptions (and therefore preferences) through marketing, with MPR presenting itself as the more effective and economically efficient natural evolutionary choice.

The intangibility and complexity of contemporary consumer behaviour is linked with ‘perception management’, and, through it, the opportunity is offered to businesses to influence customer attitudes, beliefs and feelings, and ultimately value offered. Marketing, in this consumer-focused context, employs ‘value’ as its central concept, allowing it to diffuse throughout organisational processes, an approach increasingly applied by theorists and practitioners across the industries’ spectrum to gradually cover all types of products, from tangible goods to commodities, intangible services, even ideas (Thrassou & Vrontis, 2006, 2009).

Strategic marketing implications

Transcending the abstract philosophical context of consumer behaviour transformation, all the contemporary researches mentioned in the previous section continue to touch upon a number of practical business issues. The combined findings of this research and those presented in the previous section gradually form the contours of a new contemporary strategic marketing approach, visibly shaped by two primary forces. The first finding relates to the incessant macro and micro-environmental changes inducing strategic marketing focus on reflex-style consumer relationships. The second finding is consumers’ needs increasing manifestation into intangible wants of obscure value and affective nature, which are naturally more vulnerable to marketing strategies. The combined action of the two forces establishes MPR as the single most effective value-adding communications strategy, primarily, through the construction of brand personalities and general anthropomorphic brand associations, e.g., lifestyles, values, ideas, attitudes.

The implications for company strategic marketing are critical. The rising consumer behaviour shifts the marketing target area from the consumer’s environment to the consumer’s mind, from the external to the internal, and from the tangible to the intangible. ‘Reality’ is increasingly overshadowed by ‘perception’, with the latter being predominant for a growing number of product categories. This has a profound effect on strategic marketing practice: a transference of focus from ‘function’ (awareness, knowledge, information, etc.) to ‘perception’. Consequently, “‘perception management’ arises as a primary marketing process, and ‘branding’ as its primary vehicle” (Thrassou & Vrontis, 2009, p. 514).

A contemporary MPR provisional framework

Combining this research’s empirical findings with the established consumer-focused strategic marketing findings of contemporary research, this paper presents a schematic representation of MPR in its strategic marketing context (Figure 1). This framework assists in the (albeit simplistic) comprehension of the (otherwise) complex interrelationship of elements in the strategic marketing context, and defines not just the means of MPR development, but also its ultimate strategic goals. More importantly though, it constructs a conceptual foundation for the development of a more complex, prescriptive, potentially industry-specific model of executive worth.

Delineating the framework, the first stages portray the relationship between strategic marketing, IMCs and PR, along with its consequent evolutionary MPR development. The framework purposefully includes the ‘Reversion Effect’, i.e., the phenomenon of marketing strategy being formulated, based on, rather than

AU

THO

R C

OP

YJournal of Customer Behaviour, Volume 13 JCB20

FIGURE 1 A contemporary marketing public relations framework

Strategic Marketing

REVERSIONEFFECT

AIMS

Audits

Segmentation TargetingPositioning

Marketing Mix Development

SYNERGYIntegrated Marketing

Communications Public Relations

Primary marketing process: Perception management

Primary marketing vehicle: Image construction

Primary marketing target: Consumer value

Incessant:Globalisation,

Marketrestructuring,Technologicaladvancements,

Competitiveparameters

CONSUMERVALUE PROPOSITIONS

Shift from tangibles tointangibles, value

propositions throughinnovation, perception-bases value offerings

through anthropomorphicbranding

SYMBIOTICANTINODES

‘Perception’ replacing‘Reality’: Focus

transference from‘function’ to

‘perception’, ‘Needs’manifestation into

intangible ‘wants’, ofobscure value and

affective nature

• Advanced technology and telecommunications• Smaller promotional budgets• Fragmentation of media• Increasing competition among marketing agencies• Increasing competition among clients’ markets• Changing consumer behaviour

• Advertising alone does not guarantee success• MPR enhances two-way communication• MPR is more credible and trustworthy• MPR can create a buzz and stimulates WOM• MPR is proactive and pre-emptive• MPR is better at ‘perception management’

Press releases, press conferences, events,presentations, exhibitions and road shows,seminars, anniversaries, extraordinary events(Guerrilla MPR), social media, newsletters and publications, competitions, sampling,spokespersons, brand ambassadors and interviews

Draw media coverage, create awareness, reach large audiences, generate publicity, build customer relationships, entertain, inform, remind, educate, reach narrower market segments, maintain interest, engage customers, create a ‘buzz’, build and promote image, create public interaction, encourage trial, build demand, influence public opinion, generate trust and aspiration

Businessenvironment

forces

Emergingconsumerforces

MPR growth factors MPR advantages

MPR tools MPR objectivesMarketing Public Relations

AU

THO

R C

OP

Yproducing, marketing communications resources, capacity and competences. This deviation from orthodox strategic marketing was first identified by research (Thrassou & Vrontis, 2009; Vrontis & Thrassou, 2007) and explained through the incessant environmental shifts and companies’ consequent need to reflexively adapt to it in an efficient and cost-effective manner, a notion that bonds well with this research’s MPR-related findings. Thereafter, the primary growth factors and advantages of MPR are presented, and also its main tools and objectives. MPR subsequently links organisational strategy with the ultimate marketing end, i.e., consumer value. Consumer value itself, is presented in its contemporary context, as shaped by the business and consumer forces and rising behaviours.

CONCLUDING REMARKS AND FURTHER RESEARCH

The notions’ importance is highlighted in this paper’s context, calling for a significant change in both the direction and the timelines of strategic marketing processes. While textbook principles call for an evolutionary development from ‘aims’ to ‘tactics (mix)’, the abandonment of conventional strategy for the sake of agility, effectiveness and efficiency has reversed the process implementation. Consequently, practically, executives first need to evaluate their company’s perception management tools competences, then design their value propositions according to what their competences can support, and then develop the strategic marketing aims that can reflexively adapt to changes. Equally importantly, the process route must change to incorporate and integrate marketing notions with PR ones to adopt the MPR philosophy. These do not constitute a conceptual devolution, but rather a strategic revolution in the whole approach to MPR and strategic marketing itself.

Further research may strengthen both the value and validity of this work through a similar methodology applied in different countries, ideally over a number of countries with subsequent comparisons. The conceptual model development (still a provisional one) needs empirical testing, both towards validation, but also towards refinement and industry-specificity. This research also bonds well with key contemporary strategic and consumer researches. A targeted research, therefore, to interrelate the MPR concepts hereby developed, with newly developed but established concepts in the wider business theory context, would also be universally beneficial to scholars and executives alike.

Concluding, it is worth noting that supplementing the established importance of its empirical and conceptual findings, this research carries further value owing to reasons that the authors cannot take credit for. These stem from the simple fact that while strategic communications’ effectiveness and economic efficiency were until recently the key to industry leadership and greater profit margins, their role has changed to fit the hyper-competition characterising developed markets. A successful MPR function therefore, executed in the right strategic marketing context and with the proper strategic marketing aims is not anymore a competitive advantage luxury; it is a necessity and a key to survival.

Papasolomou, Thrassou, Vrontis & Sabova Marketing public relations 21

AU

THO

R C

OP

YREFERENCES

Blackwell, R.J., Miniard, P.W., & Engel, J.F. (2006). Consumer Behaviour, 10th International edition. Cincinnati OH: Thomson, South-Western.

Broom, G.M. (2009). Cutlip and Center´s Effective Public Relations. New Jersey: Pearson Education Limited.

Chebbi, H., Yahiaoui, D., Thrassou, A., & Vrontis, D. (2013). The Exploration Activity’s Added Value Into the Innovation Process. Global Business and Economics Review, 15(2-3), 265-278. doi: 10.1504/GBER.2013.053073

Daymon, C. & Holloway, I. (2002). Qualitative Research Methods in Public Relations and Marketing Communications, 1st Ed., London: Routledge.

Duncan, T. (1985). A study of how manufacturers and service companies perceive and use MPR. (unpublished). Ball State University, Muncie, IN, USA.

Duncan, T., & Everett, S. (1993). Client perceptions of integrated marketing communications. Journal of Advertising Research, 33(3), 30-39.

Eagle, L., Kitchen, P., & Bulmer, S. (2007). Insights into interpreting integrated marketing communications. European Journal of Marketing, 41(7/8), 956-970. doi: 10.1108/03090560710752474

ESPN.com (2008, February 5). Giants’ staggering win over patriots watched by record 97.5 million. Retrieved April 4 2008, from http://sports.espn.go.com/nfl/playoffs07/news/story?id=3229763

Fill, C. (1999). Marketing Communications: Contexts, Contents and Strategies, 2nd ed. Hemel Hempstead: Prentice Hall.

Giannini, G.T., Jr. (2010). Marketing Public Relations: A Marketer’s Approach to Public Relations and Social Media, 1st ed. New Jersey: Pearson Education Limited.

Grunig, J.E. (1992). Excellence in Public Relations and Communication Management. NJ, USA: Lawrence Erlbaum Associates Publishers.

Harris, T.L., & Whalen, P.T (2006). The Marketer’s Guide to Public Relations in the 21st century, 1st ed. Ohio: Thomson/South-Western.

Henry, R. (1995) Marketing Public Relations: The Hows that Make it Work. Ames, IA: Iowa State University Press.

Kerr, G. (2009). Apples, oranges and fruit salad: A Delphi study of the IMC education mix. Journal of Marketing Communications, 15(2-3, April-July), 119-137. doi: 10.1080/13527260902757522.

Kitchen, P.J. (2010). A Marketing Communication Scenario for 2010. Research Paper for CIPR (Chartered Institute of Public Relations), London 2010.

Kitchen, P.J., & Moss, D. (1995). Marketing and Public Relations: the relationship revisited. Journal of Marketing Communications, 1(2), 105-106. doi: 10.1080/13527269500000012

Kitchen, P.J., & Papasolomou, I. (1997). The Emergence of Marketing PR. In P.J. Kitchen (Ed.), Public Relations: Principles and practice, 1st ed. (pp. 239-271). London: International Thomson Business Press.

Kotler, P. (1988). Marketing Management. New Jersey: Prentice Hall.Kotler, P. (2003). Marketing Management, 11th ed. New Jersey: Prentice Hall.Kotler, P., Armstrong, G., Saunders, J., & Wong, V. (2005). Principles of Marketing, 4th

European Edition. Upper Saddle River, NJ: Pearson Education.MatrixMedia (2013, February 19). Economic Crisis Hits Media Advertising Hard. Cyprus

Mail, p. 6.McCullough, M.E., Tsang, J., & Emmons, R.A. (2004). Gratitude in intermediate affective

terrain: links of grateful moods to individual differences and daily emotional experience. Journal of Personality and Social Psychology, 86(2), 295-309. doi: 10.1037/0022-3514.86.2.295

McDaniel, C. (1979). Marketing: An Integrated Approach. New York: Harper and Row.


AU

THO

R C

OP


Naumann, E., Jackson, J.D., & Rosenbaum, M. (2001). How to Implement a Customer Satisfaction Program. Business Horizons, 44(1), 37-46. doi: 10.1016/S0007-6813(01)80007-0

Palmer, A., & Ponsonby, S. (2002). The Social Construction of New Marketing Paradigms: the Influence of Personal Perspective. Journal of Marketing Management, 18(1), 173-192. doi: 10.1362/0267257022775864

Rose, P., & Miller, D. (1994). Merging advertising and PR: Integrated marketing communications. The Journalism Educator, 49(2), 52-68. doi: 10.1177/107769589404900208

Schiffman, L.G., & Kanuk, L.L. (2004). Consumer Behavior, 8th International Edition. Englewood Cliffs, NJ: Prentice-Hall.

Schwartz, G. (1982, October 15). Public relations gets short shrift from new managers. Marketing News, 15.

Seitel, F.P. (2001). The Practices of Public Relations. New Jersey: Prentice Hall.Shandwick Consultancy (1989, Autumn). The Public Relations Consultancy Market Worldwide.

London: Shandwick plc.Thrassou, A. (2007). Doing Business in the Industrialised Countries. In M. Katsioloudes & S.

Hadjidakis (Eds.), International Business - A Global Perspective (Chapter 13). Oxford, UK: Butterworth-Heinemann.

Thrassou, A., & Vrontis, D. (2006). A Small Services Firm Marketing Communications Model for SME-Dominated Environments. Journal of Marketing Communications, 12,(3), 183-202. doi: 10.1080/13527260600811720

Thrassou, A., & Vrontis, D. (2009). A New Consumer Relationship Model: The Marketing Communications Application. Journal of Promotion Management, 15(4), 499-521. doi: 10.1080/10496490903281270

Vrontis, D., & Thrassou, A. (2007). A new conceptual framework for a business-consumer relationship. Marketing Intelligence and Planning, 25(7), 789-806. doi: 10.1108/02634500710834223

Vrontis, D., Thrassou, A., Chebbi, H., & Yahiaoui, D. (2012). Transcending Innovativeness Towards Strategic Reflexivity. Qualitative Market Research: An International Journal, 15(4), 420-437. doi: 10.1108/13522751211257097

Yin, R.K. (2003). Case Study Research: Design and Methods, 3rd ed. Thousand Oaks: Sage Publications Inc.

Zyman, S. (1999). The End of Marketing As We Know It, 1st ed. New York: Harper Collins Publishers.

ABOUT THE AUTHORS AND CORRESPONDENCE

Ioanna Papasolomou is a Professor and the Head of the Department of Marketing, School of Business Administration, at the University of Nicosia in Cyprus. She holds a PhD in Marketing from Keele University (UK) and is a Chartered Marketer (CIM, UK). Professor Papasolomou has contributed papers to a number of international conferences and journals such as the Journal of Marketing Management, Marketing Intelligence and Planning, Journal of Brand Management, Journal of Product and Brand Management, and the Journal of Marketing Communications. She has also contributed chapters and case studies to several academic books. She is a reviewer for a number of academic journals such as the International Journal of Bank Marketing, Journal of Marketing Communications, International Journal of Corporate Communications, International Journal of Social Responsibility, and Euro Mediterranean Journal in Business. She is also a certified Chartered Marketer of the Chartered Institute of Marketing in the UK.

AU

THO

R C

OP

YCorresponding Author: Dr Ioanna Papasolomou, Professor of Marketing, Head, Marketing Department, School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus

E [email protected]

Alkis Thrassou is a Professor at the School of Business, University of Nicosia in Cyprus (EU). Dr Thrassou holds a PhD in Strategic Marketing Management from the University of Leeds (UK) and is also a Fellow Chartered Marketer (CIM, UK), a Chartered Builder (CIOB, UK) and a Research Fellow of the EuroMed Research Business Institute (EMRBI). In the 1990s he worked as a business and project manager for a consulting firm in Cyprus, leading teams of professionals through many projects of varying size and nature. He subsequently joined the Marketing Department of the University of Nicosia, involving himself in various scholarly activities, lecturing on marketing-related subjects at all levels, and undertaking extensive research in the fields of strategic marketing, services and consumer behaviour. His work has been published in dozens of refereed journals and books, and he retains strong ties with the industry, acting also as a consultant.

Dr Alkis Thrassou, Professor of Marketing, School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus

E [email protected]

Demetris Vrontis is a Professor of Marketing, Dean and Director at the University of Nicosia in Cyprus. Professor Vrontis is the Editor-in-Chief of the EuroMed Journal of Business (EMJB) and the President of the EuroMed Research Business Institute (EMRBI). His prime research interests are in strategic marketing planning, branding and marketing communications; areas in which he has widely published, in over 100 refereed journals, 18 books and given numerous presentations in conferences around the globe. Professor Vrontis is a Fellow Member and certified Chartered Marketer of the Chartered Institute of Marketing and a Chartered Business and Chartered Marketing Consultant certified by the Chartered Association of Business Administrators. Professor Vrontis also serves as a consultant and member of the Board of Directors of a number of international companies.

Dr Demetris Vrontis, Professor of Marketing, Dean and Director, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus

E [email protected]

Majka Sabova works for a Cyprus bank with international operations.

Majka Sabova, Cyprus.

E [email protected]


Marketing Public Relations: A Consumer-focused Strategic Perspective

Documents

Transcript of Marketing Public Relations: A Consumer-focused Strategic Perspective